In system design there is something called resonant amplification and what you are describing is very similar. The biases of the model are amplified with each iteration and the end result is that the system converges onto the patterns recognizable and amplified by its architecture. If you know about impulse and frequency analysis then an AI system can be considered to be a signal processor that amplifies and attenuates certain frequencies in the input/impulse. Running an LLM in a loop always ends up with nonsense as the final output.